ABSTRACT
To execute the obligation of delivery resulting from an international sales contract, carriage of the goods, mainly by road, becomes relevant. International commercial terms (Incoterms) therefore apply to contracts of sale, not to contracts of carriage. Customs vary from country to country, the same goes for the way payments are made. Payment in open account is an order given by the buyer to his bank to make a payment to the seller. The collecting bank holds the documents until the exporter’s instructions have been met and then proceeds to effect payment. The beneficiary is the party that hands over the required documents and as a result of that receives payment. The letter of credit (L/C) is suitable for undertakings that want to limit the financial risks of doing business internationally and maximise the security with international payments. The payment is on the maturity date determinable in accordance with the stipulations of the L/C.
